Forex Flash: Specs record long AUD/USD - Westpac

FXstreet.com (Barcelona) - Friday’s Commitment of Traders report on IMM positioning showed AUD/USD spec longs were extended yet again, "narrowly reaching a record high 92.2K contracts (face value AUD9.2bn)", notes Westac FX strategist Sean Callow.

"This is remarkable given Australia’s slowing economy and narrowing yield differentials but highlights that it’s not just central banks buying AUD despite RBA easing. A position of such size however is an obvious drag on further gains, with the low 1.05s proving rather hard work" Mr. Callow says.

With regards to the Japanese Yen, "there was also a sharp extension to JPY spec shorts, to -90.3K, the largest USD/JPY long stance since July 2007 and another headwind for further USD/JPY gains through 83" adds Sean, who sees USD/JPY lower over the next month.

On the spec EUR/USD front, "shorts were slashed to -32.8K from -66.7K, the least bearish euro stance since Sep 2011" the Westpac analyst concludes.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS